India’s real estate sector is supported by rapid urbanisation, rising incomes, expanding infrastructure and sustained demand for premium housing and commercial office space.
Government initiatives, improving connectivity and increasing institutional investment are further strengthening the sector.
However, investors should remain mindful of cyclical risks, elevated property prices, and interest rate movements, which can affect demand.
Here are 3 undervalued real estate stocks to add to your watchlist.
To determine the same, we have compared the stocks’ price to earnings (PE) and price to book (PB) ratios with those of the Nifty Realty Index.
This is not a stock recommendation.
#1 Raymond Realty
First on the list is the Raymond Realty stock.
Raymond Realty is the real estate arm of the Raymond Group and focuses on developing premium residential and mixed-use projects. Headquartered in Mumbai, the company has presence in the Mumbai Metropolitan Region, especially in Thane.
It follows an asset-light growth strategy by partnering with landowners through joint development agreements, enabling expansion, with lower capital requirements.
Select Valuation Metrics
| PE | PB | |
| Raymond Realty | 14.7 | 2.8 |
| Nifty Realty Index | 36.49 | 3.93 |
Source: Equitymaster/NSE
Raymond Realty trades at a PE of 14.7 and a PB of 2.8, significantly below the Nifty Realty Index averages of 36.49 and 3.93, respectively.
Looking at the company’s financial highlights, the total income for FY26 stood at Rs 30.39 bn, which is a 29% growth over the previous year. For the quarter, which is Q4, income surged 53% to Rs 11.76 bn. The EBITDA for FY26 rose to Rs 4.95 bn.
Raymond Realty has seen a 139% YoY quarterly bookings.
Moving ahead, the management has said that over the next 12 to 15 months, they’re on track to launch two more projects, both in Mahim, and are at very advanced stages in terms of approvals.
This will be followed by the Kandivali development, which will spill over into FY28.
The management believes the company has built a focused, pure-play, branded real estate development brand with a gross development value of approximately Rs 420 bn.
#2 Oberoi Realty
Next on the list is the stock of Oberoi Realty.
Oberoi Realty is one of India’s leading premium real estate developers, headquartered in Mumbai. The company develops luxury residential, commercial office, retail, hospitality, and social infrastructure projects.
Select Valuation Metrics
| PE | PB | |
| Oberoi Realty | 26.7 | 3.6 |
| Nifty Realty Index | 36.49 | 3.93 |
Source: Equitymaster/NSE
The table above suggests that Oberoi Realty trades at a discount to the Nifty Realty Index on both PW and PB ratios.
Moving ahead, in FY26, the management stated that business development activities close to 4 m sq. ft of development potential areas across diverse locations in MMR. 11 acres in Bandra East; Aram Nagar -Versova, about 2 m sq. ft were announced.
Besides this, the company also entered into agreements with societies in South Bombay for redevelopment, Pedder Road, Malabar Hill, and Nepean Sea Road.
It has also received approval from NCLT for its resolution plan submitted for a company in consortium to acquire Horizon Hotel Private Limited.
On the financial front, for Q1FY27, the company reported revenues of Rs 13,009 m vs Rs 9,876 m YoY. The net profits of Oberoi Realty were Rs 5,394 vs Rs 4,145 m YoY.
#3 Suraj Estate Developers
Next on the list is the stock of Suraj Estate Developers.
Suraj Estate Developers is a Mumbai-based real estate developer incorporated in 1986. The company focuses primarily on redevelopment projects in South-Central Mumbai, with a strong presence in Mahim, Dadar, Matunga, Prabhadevi, Parel, and more recently Bandra.
Select Valuation Metrics
| PE | PB | |
| Suraj Estate Developers | 10.3 | 0.9 |
| Nifty Realty Index | 36.49 | 3.93 |
Source: Equitymaster/NSE
The stock of Surat Estate trades at significantly lower PE and PB ratios compared to the Realty Index.
Moving ahead, the company has signed an MoU for the acquisition of a development right of a land parcel, contiguous to its ongoing commercial project known as Suraj One Business Bay at Mahim.
Upon amalgamation with the existing development, the project is expected to generate additional saleable carpet area of 1.5 lakh sq. ft with incremental GDV potential of about Rs 8,000 m, taking the combined GDV potential of Suraj One Business Bay to over Rs 20 bn.
The management believes this acquisition will significantly strengthen its commercial footprint and consolidate its presence within the South-Central Mumbai market.
Additionally, during the Q4FY26, the company completed the acquisition of 100% shareholding in Hally Pacific Private Ltd, which owns a strategically located land at Sayani Road, Prabhadevi Mumbai.
The acquisition, completed for a consideration of approximately Rs 304 m, strengthens the development pipeline in South Central Mumbai with an estimated GDV potential of Rs 2,000 m.
On the financial front, total income for Q4FY26 stood at Rs 1,010 m, while net profit increased to Rs 110 m.
Conclusion
In real estate stocks, a low PE or PB ratio may or may not reflect high debt, weak cash flows, project execution delays, regulatory issues, slow sales etc.
Before investing, assess the company’s balance sheet, debt levels, project pipeline, pre-sales, cash generation, management quality, and valuation relative to peers. A thorough analysis is essential, for adding any stock to your watchlist.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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